- Ghana’s VAT system is progressive, with richer households paying a larger share of their expenditure in VAT.
- Exemptions for basic foodstuffs benefit richer households more in cash terms.
- Many businesses below the VAT registration threshold choose to register, but many above the threshold do not.
- A significant share of registered taxpayers fail to file tax returns or file a ‘null’ return.
- The restriction of the VAT Flat Rate Scheme to small taxpayers in 2023 likely boosted tax revenues and focused benefits on those who can benefit most.
- The composition of economic growth in Ghana was not conducive to growth in VAT revenues.
- The report’s findings have already influenced tax policymaking in Ghana and guided plans in the MTRS.
Source: mofep.gov.gh
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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